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Posted Fri, 26 Aug 2022 09:31:14 GMT by IABM22
Hi all – I’m looking for advice on whether I need to do a self-assessment for my child benefit claim either for previous years or going forward. I claim for 1 child. From April 22 my annual pay is £49,700 and I also get a 10% bonus each year paid in May. In May 22 I received a bonus of £5112 Previously my annual pay was £40,900 with no annual bonus however I did receive a one off bonus in 2021 totalling £10,624 which was subject to usual tax and NI deductions. For my pension contributions each month I pay 7%.... I think it falls under “with pension contributions under net pay arrangement deducted” but I’m not sure. I do have private medical insurance under deductions on my pay slip. My last P60 for tax year to 5/4/22 under pay and income tax details states total for the year is £46986.76. Does that mean I’m ok and don’t have to pay the high income tax charge for that year? Although my annual pay isn’t over £50,000 I’ve come to realise that my bonus may have taken me over or at least that’s how I believe it works. Can anyone advise on what I need to do for any previous year and this tax year, will my bonus mean I do need to submit a self-assessment for one or both?
Posted Wed, 31 Aug 2022 13:21:48 GMT by HMRC Admin 25
Hi IABM22,

If the pension contributions are 'net pay arrangement' they are taken off before calculating your tax.

This means that the figure on your P60 will be the figure you would use to determine if you meet the criteria for the charge.

If the figure is £46989.76, and there is no taxable income outside of this, you would not meet the criteria.

If your bonus will take you over £50,000 for 22/23 tax year, you will need to complete a Self Assessment tax return for that year once the tax year has ended.

Thank you. 

 

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